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Attorney Elizabeth Potts Weinstein discusses the process of closing or canceling your EIN with the IRS when shutting down a business. An Employer Identification Number (EIN) is crucial as it serves as the tax identification number for businesses, functioning similarly to a Social Security number for individuals. As part of the business closure, it's essential to close the EIN to avoid future filings, payments, or taxes, even if the business is no longer operational. Additionally, closing the EIN can help prevent potential fraud, as keeping accounts open could lead to unauthorized activities.